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There is a major revelation out of
Photochannel
Networks (OTC BB: PNWIF). I learned about it late Friday afternoon.
Guess what- OTC Journal subscribers will be the only investors to
get dialed into this development early on. Read Fridays afternoon's
BLOG
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catches on. Watch this stock trade up dramatically next week
as this development becomes more widely known. Click
Here to go straight to it.
Also, there is a new BLOG
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Titan Global
(OTC BB: TTGL): Blows Past $100 Million Mark in '06 |
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Yes- here she is again, and she's
here to make a point. Numbers are sexy, and Titan Global is generating
some pretty sexy numbers. Titan finally released their 2006 10k
Friday morning, and followed up with a press release post close on Friday.
These numbers are a snap shot of
where the company was at the end of August, and I can't wait to see the
Q1 numbers which will be out in mid January. This could be the first quarter
the company will be able to announce an EPS profit, which of course is
a bit different than a cash flow profit. Cash flow is the most important
measure of a company's health.
TTGL reported 382% revenue
growth in fiscal '06 vs fiscal '05, and eclipsed the $100 million
mark
by achieving $109 million in revenues.
So, now let's look at the profit
picture. In the company's press release, they talk extensively about EBITDA-
They generated $7.9 million in EBITDA earnings- that's EBITDA earnings
of $.16 per share. While that is impressive, in my view the
true measure of the company's health is, in fact, the cash flow picture
from operations, and that's a little harder to dig out. Let me help you.
The company's bottom line for the
year was a net loss of $5 million, or $.13 in EPS losses. But, did they
really lose $5 million? A wise investor once said: "earnings are an accounting
opinion, cash flow is a fact".
So, after digging into the numbers,
here are the cash flow facts:
-
There was $5 million in amortization
expenses (non cash)
-
There was $700k in depreciation (non
cash)
-
There was $4.6 million in interest,
of which $1 million was non cash
-
There was a $1.7 million loss from derivatives
tied to their interest (non cash)
-
Total non cash expenses: $8.4
million in non cash expenses.
So, what does this mean to investors?
When you simply subtract the $5 million in losses from the $8.4 in non
cash expenses, you come out with a rough estimate of $3.4 million
in positive cash flow, or $.068 per share in real cash profits.
In addition to the strong cash flow
performance, there is another matter that bears looking into. Now that
TTGL
has started generating positive cash flow, they should be in a position
to refinance their debt with a more traditional lender- less of a loan
shark.
According to the press release dated
November 10th, TTGL is planning to refinance its debt with a new
lender. They estimate the new loan will save the company $3.6 million in
annual "cash flow". Therefore, if they close on the refinance, their cash
flow picture should go to $7 million in cash profits on an
annual basis.
When you think of TTGL, think
about the 30 million of these little cards they sell every year. 30 million
is a very big number. Think about owning TTGL at a market value
below $50 million, while the company has generated $109 million
in revenues last fiscal year and is headed for $140 million this
year.
If the pattern continues, the market
is going to find out about this company, and the stock has the potential
to double or triple over the next several quarters.
I started with this idea at the end
of October at $.84. Short term it was up over $1.10. However, the stock
has quietly drifted down slightly over the past month as the market awaited
the 10K filing.
A little volume surge should take
this stock higher relatively quickly. However, I'm not looking to a quick
surge to $1 as being very meaningful. Over the course of 2007 I am looking
for much higher levels. As the financials improve, this will become and
institutional quality idea, and you will be positioned way ahead of the
crowd.
One important aspect to this idea-
we won't have to wait long for the next numbers. Q1 numbers will be out
on January 15th. If the progress is as strong, look out above.
Here is the complete text of Friday's
news release for your review:
| Press Release Source:
Titan Global Holdings, Inc.
Titan Reports Record
Annual Performance in Fiscal Year 2006 with 382% Revenue Growth to $109
Million and EBITDA of $7.9 Million
Friday December 15, 4:01
pm ET
Strong Financial Performance Led
by 1,435% Revenue Increase in Communications Division as Management Projects
Continued Growth for 2007
DALLAS--(BUSINESS WIRE)--Titan
Global Holdings, Inc. (OTCBB:TTGL - News), a high-growth diversified holding
company, reported record financial results for the fiscal year ended August
31, 2006, with the Company's divisions generating a total of $109 million
in revenues for the period, representing a 382% increase over the previous
fiscal year.
The Company also reported
$7.9 million in earnings before interest, taxes, depreciation and amortization
(EBITDA), versus an EBITDA loss of $2.1 million the previous year.
"The dramatic improvements
in the consolidated results of Titan Global Holdings in 2006 were the result
of the successful execution of our high-growth strategy to capitalize on
expanding opportunities in the worldwide communications and electronics
industries," stated Bryan Chance, President and Chief Executive Officer
of Titan Global Holdings. "We're extremely pleased by these results and
by our prospects for continued revenue growth and shareholder value."
Titan's Communication
Division, which includes Oblio Telecom Inc., Titan Wireless Inc., Pinless
Inc., Starttalk Inc. and others, reported particularly strong financial
performance, with revenues up 1,435% revenue increase over the previous
fiscal year.
"Most importantly, these
results indicate our strong positioning for continued expansion and revenues,"
said Mr. Chance. "We are confident in our ability to add significant solid,
profitable growth by taking advantage of the increasing demand for prepaid
communications solutions and our expanding market share in the electronics
and homeland security division."
Concurrent with this
announcement, Management is providing comfort for its previously announced
guidance for 2007 of $145 million in consolidated revenue, with an estimated
$18.5 million in EBITDA.
Titan Management will
host an investor conference call on Wednesday, December 20, at 12 pm ET
to discuss the fiscal 2006 financial results.
Following are revenue
and EBITDA results by division.
Titan Communications
Division
Titan's Communications
Division reported the following results for 2006:
*
Revenue of $89.3 million, up 1,435% from $5.8 million the previous year
*
EBITDA of $8.5 million, a 978% increase from a $785,000 EBITDA in the previous
year
"2006 was a year of growth
and positioning in for our Communications Division," stated Kurt Jensen,
President of Titan's Communications Division. "We strengthened our prepaid
international calling card business through our new partnership with Sprint
and the addition of our Starttalk subsidiary, which added important infrastructure
for us to terminate international calls internally. We also successfully
launched our first prepaid wireless offering, Bravo Cellular, adding over
20,000 subscribers in the last two fiscal quarters."
Titan's Electronics and
Homeland Security Division reported the following results for 2006:
*
Revenue of $20.5 million, up 16% from $17.7 million in the previous year
*
EBITDA loss of $554,000, demonstrating strong improvement from the previous
year's EBITDA loss of $2.9 million.
"The progress we achieved
was the result of a number of successful initiatives, including growth
and optimization plans we implemented at our printed circuit board plants,"
said Curtis Okumura, President and Chief Operating Officer of Titan PCB
West, Inc. and Titan PCB East, Inc. "We anticipate building on this growth
as we move into 2007 and beyond and continue to capitalize on new opportunities
and develop new business."
About Titan Global Holdings
Titan Global Holdings,
Inc. ("Titan") (OTCBB:TTGL - News) is a high-growth diversified holding
company with a dynamic portfolio of companies engaged in emerging telecommunications
markets and advanced technologies. In its last fiscal year Titan generated
in excess of $110 million in revenues on a consolidated basis.
Titan's Oblio Telecom
Inc. ("Oblio") telecommunications subsidiary, based in Richardson, Texas,
is a market leader in prepaid telecommunications products and the second
largest publicly-owned international telecommunications company focused
on the prepaid space. Oblio leverages strategic agreements with Tier 1
telecommunications leaders Sprint and Level3 to supply its brand-name prepaid
calling cards. Annually Oblio sells an estimated 35 million of its brand-name
prepaid calling cards through its established distribution channels estimated
at more than 60,000 retail outlets.
Titan Wireless, Inc.
("T Wireless") is Titan's wireless subsidiary and is a mobile virtual network
operator ("MVNO"). T Wireless sells its MVNO prepaid wireless products
and wireless services through Oblio's established distribution channels.
Titan's Electronics and
Homeland Security division specializes in advanced manufacturing processes
to provide commercial production runs and quick-turn delivery of printed
circuit board prototypes for high-margin markets including Homeland Security
and high-tech clients.
For more information,
please visit: www.titanglobalholdings.com. For investor-specific information
and resources, visit http://www.trilogy-capital.com/tcp/titan/ or http://www.b2i.us/irpass.asp?BzID=1314&to=ea&s=0.
To view current stock quotes and news, visit http://www.trilogy-capital.com/tcp/titan/quote.html.
To view an investor fact sheet about the company, visit http://www.trilogy-capital.com/tcp/titan/factsheet.html.
Forward-Looking Statements
Safe Harbor Statement
Under the Private Securities Litigation Act of 1995 -- With the exception
of historical information, the matters discussed in this press release
are forward-looking statements that involve a number of risks and uncertainties.
The actual future results of TTGL could differ significantly from those
statements. Factors that could cause actual results to differ materially
include risks and uncertainties such as the inability to finance the company's
operations or expansion, inability to hire and retain qualified personnel,
changes in the general economic climate, including rising interest rate
and unanticipated events such as terrorist activities. In some cases, you
can identify forward-looking statements by terminology such as "may," "will,"
"should," "expect," "plan," "anticipate," "believe," "estimate," "predict,"
"potential" or "continue," the negative of such terms, or other comparable
terminology. These statements are only predictions. Although we believe
that the expectations reflected in the forward-looking statements are reasonable,
such statements should not be regarded as a representation by the Company,
or any other person, that such forward-looking statements will be achieved.
We undertake no duty to update any of the forward-looking statements, whether
as a result of new information, future events or otherwise. In light of
the foregoing, readers are cautioned not to place undue reliance on such
forward-looking statements. For further risk factors see the risk factors
associated with our Company, review our SEC filings.
Contact:
Titan Global Holdings,
Inc.
Bryan Chance, 972-470-9100
bchance@titanpcb.com
or
Financial Communications:
Trilogy Capital Partners
Paul Karon, Toll-free:
800-592-6067
paul@trilogy-capital.com
Source: Titan Global
Holdings, Inc. |
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